value added tax problems examples
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1. Kylie buys an article for $ 10000 and pays 7% tax. He sells the sa
me article for $ 13000 and charges 9% tax. Find the VAT paid by Kylie.
2. A retailer buys an article from the wholesaler at $80 and the wholesaler charges a sales tax at the prescribed rate of 8%. The retailer fixes the price at $ 100 and charges sales tax at the same rate. Apply value added tax system of sales tax calculation to answer the following questions.
(i) What is the price that a consumer has to pay to buy the article?
(ii) Find the input tax and output tax for the retailer.
(iii) How much VAT does the retailer pay to the government?
3. A shopkeeper sells an article at its marked price $ 7500 and charges sales-tax at the rate of 12% from the customer. If the shopkeeper pays a VAT of $ 180, calculate the price inclusive of tax paid by the shopkeeper.
4. A manufacturer printed the price of his goods as $120 per article. He allowed a discount of 30% to the wholesaler who in his turn allowed a discount of 20% on the printed price to the retailer. If the prescribed rate of sales tax on the goods is 10% and the retailer sells it to the consumer at the printed price then find the value added tax paid by the wholesaler and the retailer
Hope it helps....
me article for $ 13000 and charges 9% tax. Find the VAT paid by Kylie.
2. A retailer buys an article from the wholesaler at $80 and the wholesaler charges a sales tax at the prescribed rate of 8%. The retailer fixes the price at $ 100 and charges sales tax at the same rate. Apply value added tax system of sales tax calculation to answer the following questions.
(i) What is the price that a consumer has to pay to buy the article?
(ii) Find the input tax and output tax for the retailer.
(iii) How much VAT does the retailer pay to the government?
3. A shopkeeper sells an article at its marked price $ 7500 and charges sales-tax at the rate of 12% from the customer. If the shopkeeper pays a VAT of $ 180, calculate the price inclusive of tax paid by the shopkeeper.
4. A manufacturer printed the price of his goods as $120 per article. He allowed a discount of 30% to the wholesaler who in his turn allowed a discount of 20% on the printed price to the retailer. If the prescribed rate of sales tax on the goods is 10% and the retailer sells it to the consumer at the printed price then find the value added tax paid by the wholesaler and the retailer
Hope it helps....
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